Cadence Design Systems, Inc. $CDNS Shares Sold by Franklin Resources Inc.

Key Points

• Franklin Resources cut its Cadence Design Systems stake by 21.8% in the fourth quarter, selling 860,775 shares and ending with 3.08 million shares worth about $963 million.
• Cadence reported a strong quarter with EPS of $1.96 and revenue of $1.47 billion, both slightly ahead of expectations, while revenue rose 18.6% year over year. The company also issued FY2026 guidance of $7.85–$7.95 EPS.
• Despite solid fundamentals and bullish analyst sentiment, recent insider selling and other short-term trading signals may be pressuring sentiment. Analysts still largely rate the stock a Moderate Buy, with a consensus target price of $384.41.

Franklin Resources Inc. lowered its stake in shares of Cadence Design Systems, Inc. (NASDAQ:CDNS - Free Report) by 21.8% during the fourth quarter, according to its most recent Form 13F filing with the SEC. The fund owned 3,081,716 shares of the software maker's stock after selling 860,775 shares during the period. Franklin Resources Inc. owned 1.13% of Cadence Design Systems worth $963,283,000 at the end of the most recent quarter.

Other institutional investors and hedge funds also recently added to or reduced their stakes in the company. Y.D. More Investments Ltd acquired a new position in Cadence Design Systems during the third quarter worth $26,000. Caitlin John LLC acquired a new position in Cadence Design Systems during the third quarter worth $29,000. Lodestone Wealth Management LLC acquired a new position in Cadence Design Systems during the fourth quarter worth $30,000. Imprint Wealth LLC acquired a new position in Cadence Design Systems during the third quarter worth $31,000. Finally, MidAtlantic Capital Management Inc. acquired a new position in Cadence Design Systems during the fourth quarter worth $32,000. Institutional investors and hedge funds own 84.85% of the company's stock.

Cadence Design Systems News Summary

Here are the key news stories impacting Cadence Design Systems this week:

• Positive Sentiment: Cadence is still being viewed favorably by analysts, with reports highlighting its strong position in EDA software, AI-driven workflows, and expanding system design offerings. One recent bullish note called it a long-term winner in the AI and semiconductor “arms race,” citing 19% Q1 revenue growth, a record $8 billion backlog, and a $470 price target. Article: Cadence: The Silicon Arms Race Is Just Getting Started
• Positive Sentiment: Cadence signed a licensing deal with Aeva to use Tensilica Vision DSP technology in next-generation 4D LiDAR systems, extending CDNS’s reach into AI sensing hardware and adding another growth angle beyond core chip-design software. Article: Cadence Aeva LiDAR Deal Extends AI Sensing Role For Investors
• Neutral Sentiment: Cadence remains a heavily watched stock among investors, which may be drawing attention ahead of any future catalysts, but the “trending” coverage itself does not change fundamentals. Article: Is Trending Stock Cadence Design Systems, Inc. (CDNS) a Buy Now?
• Neutral Sentiment: The company’s recent conference appearance kept Cadence in front of investors, but it did not include a major new financial update, so the impact on the stock is likely limited. Article: Cadence Design Systems, Inc. Presents at Bank of America 2026 Global Technology Conference Transcript
• Negative Sentiment: Recent insider selling by CEO Anirudh Devgan and VP Paul Scannell may be weighing on sentiment, even though the trades were made under pre-arranged 10b5-1 plans. Article: Insider trade details for Anirudh Devgan
• Negative Sentiment: Unusual put-option trading and headlines noting CDNS underperformed the broader market suggest some investors are positioning for more downside or taking profits after the stock’s strong move higher. Article: Here's Why Cadence Design Systems (CDNS) Fell More Than Broader Market

Cadence Design Systems Price Performance

CDNS stock opened at $376.19 on Monday. The company has a current ratio of 1.47, a quick ratio of 1.32 and a debt-to-equity ratio of 0.38. The company has a market capitalization of $103.76 billion, a PE ratio of 87.69, a P/E/G ratio of 4.45 and a beta of 1.15. Cadence Design Systems, Inc. has a 12-month low of $262.75 and a 12-month high of $416.69. The business's fifty day moving average price is $333.17 and its 200 day moving average price is $315.86.

Cadence Design Systems (NASDAQ:CDNS - Get Free Report) last posted its quarterly earnings data on Monday, April 27th. The software maker reported $1.96 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.91 by $0.05. The firm had revenue of $1.47 billion for the quarter, compared to the consensus estimate of $1.46 billion. Cadence Design Systems had a return on equity of 28.44% and a net margin of 21.18%.The company's quarterly revenue was up 18.6% compared to the same quarter last year. During the same quarter in the previous year, the business earned $1.57 EPS. Cadence Design Systems has set its FY 2026 guidance at 7.850-7.950 EPS and its Q2 2026 guidance at 2.020-2.080 EPS. On average, sell-side analysts anticipate that Cadence Design Systems, Inc. will post 6.23 EPS for the current year.

Insider Transactions at Cadence Design Systems

In related news, VP Paul Scannell sold 7,081 shares of the business's stock in a transaction on Monday, June 1st. The stock was sold at an average price of $393.91, for a total value of $2,789,276.71. Following the sale, the vice president owned 32,181 shares in the company, valued at approximately $12,676,417.71. The trade was a 18.04% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, VP Paul Cunningham sold 1,000 shares of the business's stock in a transaction on Friday, May 1st. The shares were sold at an average price of $337.49, for a total value of $337,490.00. Following the completion of the sale, the vice president owned 127,586 shares in the company, valued at $43,058,999.14. This represents a 0.78% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 176,046 shares of company stock worth $65,830,801 over the last quarter. 0.49% of the stock is owned by corporate insiders.

Analyst Upgrades and Downgrades

A number of equities analysts have weighed in on CDNS shares. Rosenblatt Securities reissued a "buy" rating and set a $360.00 price objective on shares of Cadence Design Systems in a research note on Friday, April 24th. Needham & Company LLC reaffirmed a "buy" rating and issued a $400.00 price target on shares of Cadence Design Systems in a research note on Tuesday, April 28th. KeyCorp upped their price target on Cadence Design Systems from $405.00 to $425.00 and gave the company an "overweight" rating in a research note on Tuesday, April 28th. Wells Fargo & Company upped their price target on Cadence Design Systems from $400.00 to $425.00 and gave the company an "overweight" rating in a research note on Tuesday, May 26th. Finally, Stifel Nicolaus set a $395.00 price target on Cadence Design Systems in a research note on Wednesday, February 18th. Fourteen investment analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company's stock. According to data from MarketBeat, Cadence Design Systems currently has a consensus rating of "Moderate Buy" and a consensus target price of $384.41.

About Cadence Design Systems

Cadence Design Systems, Inc NASDAQ: CDNS is a global provider of electronic design automation (EDA) software, hardware and intellectual property used to design and verify advanced semiconductor chips, systems-on-chip (SoCs), printed circuit boards (PCBs) and packaging. Headquartered in San Jose, California and founded in 1988, Cadence serves semiconductor companies, original equipment manufacturers and system designers across the globe, helping customers accelerate design cycles and manage the complexity of modern integrated systems.

The company's offerings span software tools for digital, custom/analog and mixed-signal design, verification and signoff, as well as solutions for system-level modeling, thermal and signal integrity analysis, and PCB and package design.

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